2023-05-12 09:47:25
Through the sale, Adidas will partly avoid an additional loss of hundreds of millions of dollars after months of “abandoning” high-end shoes in stock. The profits earned will be donated to charities.
After months of headaches calculating the fate of millions of Yeezy shoes, Adidas confirmed to the media on May 11 that they will sell the products in stock. At the end of October last year, the German sportswear label severed its partnership with Kanye West after the male rapper’s anti-Semitic comments. Since then, Yeezy’s unreleased new shoe product line with a total value of 1.2 billion euros (VND 30.7 trillion) has put Adidas in a dilemma because it could not sell but also gave away. no OK. In February, the “Heartless” vocalist reached an agreement with Adidas that the company would discontinue the remaining Yeezy-related designs. Reports from multiple stores also show that the new contract will allow the company to open and sell its previous product lines while working with Ye.
At Adidas’ recent annual shareholder meeting, the CEO said the company had spent months looking for solutions, including discussions with NGOs and groups damaged by these issues. comments, actions of Ye. Skipping the option of destroying the shoes, the company will instead try to sell the remaining Yeezy products and “donate money to organizations that have helped us and were harmed by what Ye said.”
This is Adidas’ attempt to bounce back and forth from its partnership with Kanye West as well as the Yeezy brand. The severance of business with the male rapper caused the company to lose 600 million euros (15.4 trillion dong) in the last 3 months of 2022. Last week, the company released its report for the beginning of 2023 and continued to show the amount loss of 400 million euros (10.2 trillion dong). At the same time, Adidas is also facing a class action lawsuit from investors. The company allegedly knew about Ye’s derogatory remarks and harmful behavior for many years before ending the deal with the male rapper.
While Adidas was trying to process the Yeezy shoes that had been in stock for many months, Kanye West was discovered to have opened a new headquarters next to a store of the company on Melrose Avenue, Los Angeles (USA). This is likely to make it more difficult for brands to “liquidize” products in stock after they stop shaking hands with Ye.
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